Precision Optics’ CEO, Joseph Forkey, commented, "I am pleased with the results of the quarter which show strong year-over-year revenue growth and improvements in many key aspects of our business. Our strategic decision to work closely with a number of key medical device and defense companies at the very early design stage of projects over the last number of years, is beginning to pay off. Production revenues increased for the third quarter in a row, reflecting the ongoing success of the three development projects that transitioned to production during the last year. We have strong indications that all three will continue beyond current orders through this calendar year and into the future. Our gross margin for the quarter recovered nicely to a level of 33% compared to the previous quarter’s gross margin of 24%. This was due in large part to our focus on margin improvement and we believe the opportunity remains to drive margins higher in the future."

Dr. Forkey continued, "Our pipeline continues to advance with a number of projects moving closer to commercialization that could drive growth over the coming years. We see large market opportunities for our products and services and so have begun to invest in an expansion of our sales, engineering and manufacturing resources. These investments will add capacity to our unique complement of specialized, vertically integrated, in-house skills and capabilities that allow us to take a project from the conception and design phase all the way through to volume production. Our recent results have validated our confidence in the growth of markets for micro-imaging and 3D imaging in medical systems and in our ability to ‘enable’ the next generation of technologies, which continues to be a key differentiator for Precision Optics. We look forward to driving ongoing revenue growth and profitably scaling our operations into the future."

The following table summarizes the third quarter and nine month results for the periods ended March 31, 2019 and 2018 (unaudited):

An audio replay of the conference call will be available approximately one hour after the conclusion of the call and will be made available until May 22, 2019. The audio replay can be accessed by dialing 1-877-344-7529 toll free from the U.S., or 1-412-317-0088 for international callers, and entering Replay Access Code 10130914.

Following are the Company’s consolidated balance sheets as of March 31, 2019 and June 30, 2018, and statements of operations for the three and nine months ended March 31, 2019 and 2018 and statements of cash flows for the nine months ended March 31, 2019 and 2018 (unaudited):